Australian Dollar recovers losses amid improved Consumer Sentiment index
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The Australian Dollar inches higher amid the improved Consumer Sentiment index released on Tuesday. Australia’s Westpac Consumer Confidence rose by 1.7% MoM in June, marking the highest level since February. The US Dollar may limit its downside; strong US business activity data dampened expectations for Fed rate cuts. The Australian Dollar (AUD) inches higher due to an improvement in Australia’s Westpac Consumer Confidence Index, released on Tuesday. Additionally, the AUD/USD pair receives support from the hawkish stance of the Reserve Bank of Australia (RBA). However, investors are likely to be cautious ahead of this week’s Australian inflation data. The RBA Governor Michele Bullock said during her latest press conference that the Board discussed potential rate hikes, dismissing considerations of rate cuts in the near term, as per ABC News. Markets have significantly reduced their expectations for a RBA’s rate cut this year, with an easing not anticipated until April next year. The US Dollar trades on a softer note ahead of key US economic data due later this week. The revised US Gross Domestic Product (GDP) for the first quarter (Q1) is set to be released on Thursday, followed by the Personal Consumption Expenditure (PCE) Price Index on Friday. Daily Digest Market Movers: Australian Dollar edges higher due to improved Consumer Sentiment Australia’s Westpac Consumer Confidence rose by 1.7% month-over-month in June, rebounding from a 0.3% decline the previous month. This marks the first increase in four months and the highest level since February. According to the CME FedWatch Tool, investors are pricing in nearly 67.7% odds of a Fed rate cut in September, compared to 61.5% a week earlier. On Tuesday, the People’s Bank of China injected 300 billion Yuan via seven-day reverse repos, maintaining the reverse repo rate at 1.8%. Any change in the Chinese economy could impact the…
Filed under: News - @ June 25, 2024 3:18 am